POSTED BY August 14, 2012 2:26 pm COMMENTS (2)ON
Pl.consider this mail that I recieved to save tax:
If on a — SALARY OF 65000/-
SHOW 7000/- AS TRAVELLING EXPENSES
SHOW 3000/- AS BOOKS,LAUNDRY EXPENSES
SHOW 5000/-AS TELEPHONIC EXPENSES
SHOW 5000/- AS MISCELLANEOUS EXPENSES
SO IT IS A DEDUCTION OF 20000/- PER MONTH SO
YOUR SALARY NOW BECOMES 45000/- FOR TAX PURPOSES-
Now claim other deductions as well.
SO NET YOU HAVE SAVED TAX ON 20000/- per month .'( 2.40,000 per year)
Is it true that tax can be saved in this way ?
Is this trick only for Self employed or also for salaried employees?
Also how much maximum permissible in each category of expenses?
Which form is applicable -Form 16 or 16A?